Will DTV Delay Help Converter Box Coupon Backlog?

Even if President Obama approves a DTV transition delay until June 12, some people might still be waiting for converter box coupons long after that date passes, a Federal Communications Commissioner suggested Thursday.

Even if President Obama approves a DTV transition delay until June 12, some people might still be waiting for converter box coupons long after that date passes, a Federal Communications Commissioner suggested Thursday.

The problem is not a lack of coupons, but a lack of funds to back them up.

The National Telecommunications and Information Administration (NTIA), the agency handling coupon distribution, was initially allotted $1.34 billion for the program. NTIA said for months that that was enough money, but it notified Congress late last year that an unexpected December surge in coupon requests put them at a $330 million loss.

Every American is entitled to two $40 coupons. In order for NTIA to keep track of coupon redemption  and its finances  these coupons expire after 90 days. If coupons expire before being redeemed, NTIA can free up that money and send out more coupons. Under current law, people cannot re-apply for coupons.

Without immediately available funds, NTIA is now putting people on a waiting list until existing coupons expire. As of Feb. 3, that waiting list had more than 2 million households waiting for over 3.7 million coupons, Tony Wilhelm, NTIA's consumer education director, said during a Thursday DTV hearing at the FCC.

NTIA can process between 1.5 and 2 million coupons per week, "so at this rate, it would [take] several weeks to liquidate the current waiting list," Wilhelm said. "[But] by the time the funds are made available, this list could be much longer. Currently, we're looking at about three weeks."

NTIA is now adding an average of 120,000 coupon requests to its waiting list every week, Wilhelm said. On Wednesday, for example, NTIA had 142,000 total coupon requests and removed 91,000 from its waiting list.

"If we start doing the math, there will still be people who don't have their coupons on June 12, regardless of how much money is injected into this," said Republican FCC Commissioner Robert McDowell.

Wilhelm did not dispute McDowell's assessment.

A Thursday White House blog post made note of the bill's passage, and said it "now heads to the President's desk to be signed into law," but Obama has yet to formally add his signature to the legislation.

The FCC, however, is already altering its plans for a June 12 transition. The commission unveiled a revamped DTV transition plan that calls on TV broadcast stations that want to switch from analog to digital signals by February 17 to notify the FCC by February 9.

The DTV Delay Act allows stations to switch from analog to digital before June 12 if they wish. The updated FCC rules, however, allow the commission to deny a request for early transition if they do not believe it would be in the best interest of the consumer.

Related

Of the 1,749 full-power stations making the switch, the FCC has granted requests or received notification from 143 stations that have already shut down analog service. An additional 60 stations plan to make the switch before February 17, according to a Tuesday letter acting FCC Chairman Michael Copps wrote to House Republican leaders.

Copps said Thursday that he welcomes the delay. "It's too early today to present a grand new plan for the next four months, [but] it's important to be as open and transparent as possible."

Several broadcasters have committed to continuing analog service until June 12, Copps said, including ABC, Fox, NBC, Telemundo, and ABC. Gannett and Hearst Argyle Television, meanwhile, said a "vast majority" of its stations will maintain analog service for the next four months, Copps said.

Chloe Albanesius has been with PCMag.com since April 2007, most recently as Executive Editor for News and Features. Prior to that, she worked for a year covering financial IT on Wall Street for Incisive Media. From 2002 to 2005, Chloe covered technology policy for The National Journal's Technology Daily in Washington, DC. She has held internships at NBC's Meet the Press, washingtonpost.com, the Tate Gallery press office in London, Roll Call, and Congressional Quarterly. She graduated with a bachelor's degree in journalism from American University...
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